April 2, 2020
How to Dropship from Aliexpress with No Start Up Money or Capital

How to Dropship from Aliexpress with No Start Up Money or Capital


Today, I’m going to teach you how to create
an Ali Express drop shipping business using your own online store. This method requires that you have your own
online store like a WooCommerce store, and it’s not suitable if you’re only selling on
Amazon and eBay. I’m going to explain why that is later in
this video. If you don’t have your online store, creating
one is really, really easy. In fact, I have a video tutorial which shows
you how to do this step by step using WooCommerce. To find it, simply click on the link in the
video description below. I’m also going to be revealing a real life
case study of someone who is already doing this and earning over $4,000 a month in pure
profit. And I think you’re going to be surprised at
just how easy all of this is so let’s jump straight into it. If you haven’t heard about Ali Express, it
is a website where Chinese suppliers will dropship your items individually to international
customers. As a result, there are lots of items out there
that are really, really cheap. What you need to do is you need to go to Ali
Express and locate good, quality items. You can then relist them in your own online
store to sell and because the items are so cheap to start with, it gives you a ton of
leeway to put your own price on it and to put a big markup on it. I’m going to switch over to my computer screen
and show you a real life example of someone who is currently doing this and earning over
$4,000 a month and show you the steps that they are taking to do it. So this here is the World of Harry store. This is owned by a man named Yaro [SP] who
has been very generous and offered up his store as an open case study for how to build
an Ali Express dropshipping site. Now, you would think from just looking at
World of Harry here that it was a really professional website. Now, it is a professional website, but it’s
actually secretly an Ali Express drop shipping site. So what I’m going to show you is the prices
that he’s able to charge for the items that he sells, and then I’m going to take you to
Ali Express and show you the exact items that he is dropshipping and the prices that he
gets so that you can see how much money there is to be made. So let’s start out. We’ll come over here to magic wands, and we’ll
pick an item from the list to go check out. All right. Let’s come here and let’s check out Ron Weasley’s
magical Harry Potter wands. I’m just going to copy that. Now, I’m going to come back to over here [inaudible
00:02:24] to Ali Express. So this here…if you’ve never seen Ali Express,
this is what it looks like. This is where you find cheap Chinese dropshippers
for your online store. So let’s come up to the search bar. We are researching for Ron Weasley magical
wand and we’re going to do a search for that. All right. So we can immediately see the exact wand that
he is dropshipping. He is dropshipping this one, so we’ll come
and we’ll open up this listing and see how much he’s really paying for it. So you can see that you can purchase it for
$9.64 plus free shipping. So if we come…and let’s switch back to the
World of Harry and we’ll open up the listing that the World of Harry has for this exact
wand. We can see that he is charging $23.99, but
we can also see that this exact wand is selling on Ali Express for $9.64. So all he needs to do when someone comes and
purchases one of these wands from him is to come to Ali Express, to the supplier, and
purchase this item and get it sent to his customer. That is literally all that he is doing, and
he is making over a $1,000 a month in profit from this. So let’s come and check out how much money
he is making. So he is fulfilling his orders [inaudible
00:03:46] orders. His checkout is with PayPal. So we’ll type in $23.99 into this PayPal calculator,
and we’ll calculate the fees. So there is a total of $1 in fees when someone
purchases this item from him which means that he is left with $22.99 at the end of the sale. That means, then, that considering that he
is paying just $9.64 for this item when someone purchases it from him, that he is making a
cool $13 in profit, actually, more than $13 in profit from every sale. So that’s pretty cool. Let’s come and switch back to his Ali Express
[inaudible 00:04:29]. We’ll come back and switch to World of Harry
and take a look at his listing and see the nifty things that he does to be able to get
the price that he does from every customer that comes in through his store. We can see that he’s done a lot of things
right. He has created a sense of urgency by saying
that there are only 16 left in stock. He’s got the buyer protection emblem there
so that people know that they can get a full refund if they don’t get their order, which
helps them to have more trust and to be more likely to purchase from World of Harry. He has free shipping worldwide which, of course,
as we know, it’s not really free because of the fact that he’s already getting free shipping
from Ali Express anyway, and he’s just charging a massive markup. But you would be surprised at the fact that
buyers really love free shipping. That’s a really great way to increase your
conversions. He’s got checkout with PayPal and people trust
PayPal. He’s got the McAfee secure emblem at the top
there on his website. And if we scroll down the site, we can see
that he’s got other ways in which he’s added other trust emblems such as the payment methods
emblem. You could definitely add those to your website
because if you’re accepting payments through PayPal, then you can accept those different
types of payment methods as well because, obviously, PayPal accepts credit cards. And of course, he’s gone ahead and created
lots of other pages on his website such as the shipping, delivery and refund policy,
and a privacy policy, and a terms and conditions to increase trust with people that come to
his website looking to purchase items. He’s also on social media which, once again,
creates a relationship between him and potential buyers. So these are the ways that he has been able
to add value to what was $9 and, I think, 64 cents magical wand that he is able to then
sell for $23.99 in his store. And it is seriously that simple, guys. All he is doing is sourcing his items from
Ali Express and then relisting them in his own store. He is earning a $1,000 a month for World of
Harry, actually, over a $1,000 a month. And he has portfolio website just like this
one that are earning him over $4,000 a month. There is absolutely no reason why you can’t
do this too. And that’s it. It’s really simple. This is a great method for people who don’t
have much startup money, but they want to start a drop shipping business. If you set up a store following the step by
step instructions that I outlined in my recent video, then you will be able to be paid immediately
from the customer as long as you have a verified premier or business PayPal account. This makes it a great option then for people
that don’t have access to a big pool of startup money or a credit card which is necessary
if you want to start a dropshipping business on Amazon. Amazon have implemented a 14-day period whereby
they will hold the money that the customer pays you. This means that you need to have money to
buy the item for the customer in advance and then you will receive the payment later. I know that there are many people who haven’t
been able to dropship on Amazon because of this, so I thought that this would be a great
alternate business plan for them. Now, I’ve got three big tips to help you in
your Ali Express drop shipping business. Tip number one, take advantage of the Ali
Express affiliate program. For those of you that don’t know, an affiliate
program is when a store offers you the opportunity to recommend their store or products to other
customers. They will give you a unique URL to do this. The store then tracks customers who purchase
an item after clicking on your unique URL. If they do purchase something, you get a commission
for their purchase. Ali Express have their own version of an affiliate
program that different sellers are optionally allowed to go into and then each seller will
offer their own commission rates. These commission rates can be huge. They can be up to 50% of the sale price. So here’s how you take advantage of it. Every time a customer purchases an item from
you in your store, you then go to Ali Express and order the item for the customer using
your unique affiliate URL. This way not only will you make money from
the profit margin that you have put on the item but you will also make extra money in
affiliate commissions and this can add up to hundreds of dollars. Yaro is doing this and in addition to earning
thousands of dollars each month from the profit that he gets from selling all the items in
his store, he is also earning hundreds of dollars in extra commission as well. He has created a plugin Ali Partnership that
makes this easy. To get Ali Partnership for yourself simply
click on the link in the video description below. And that link is, funnily enough, an affiliate
link, but the only reason that I put it there is because of the fact that I do genuinely,
honestly believe in the product because I know that it is making Yaro thousands of dollars
every year. My second tip, then, is that when you purchase
an item from an Ali Express supplier that you include a note asking them to not include
an invoice or a packing slip, pricing or samples with the order. Most Ali Express suppliers are experienced
dropshippers. They are aware that there are people regularly
dropshipping their products. As a result, they do not include these items
as standard practice. But occasionally, stores will do this and,
as a drop shipper, that is not ideal because you don’t want your customer to know your
original source and the price that you paid. The reason for this is because you want the
customer to come back to you to purchase more items and not your original supplier. If they know they can get it for cheaper elsewhere,
they’ll go there. And this is called blind dropshipping when
a supplier does not include any branding so that the buyer does not know the original
source of the item. And again, most Ali Express suppliers will
blindly dropship by default but it’s best to be safe and include a note asking them
to do so just in case. And my third tip would be to be careful to
avoid products that could potentially be infringing upon copyrights. I’m using World of Harry as my example in
this video because Yaro has been generous enough to offer it up as a public case study,
but it’s not a niche that I would normally recommend that you get into because of the
fact that the suppliers that he’s buying his items from are unlikely to be licensed to
sell Harry Potter products. That is why you should avoid selling merchandise
that is branded from China because they are probably not licensed to sell it. If the original copyright holders find you,
they can shut you down. It is short-term easy money, but it has no
future. I would recommend that you instead focus upon
selling legitimate products that will give you income into the future. So those are my three big tips to help you
when doing Ali Express dropshipping. But I’m not completely finished. I want to address the point that I made earlier
about the fact that it is not suitable to use Ali Express dropshippers when selling
on Amazon. If you’re a long-time subscriber to Wholesale
Ted, you know that in the past I have recommended that you don’t use Chinese suppliers as dropshippers,
which probably makes this video really confusing because here I am recommending that you use
Chinese suppliers for your own dropshipping store. Well, let me explain. In the past, I was talking about finding dropshippers
for Amazon. It is not suitable to use the Ali Express
dropshippers for an Amazon store, but it is suitable to use them for your own online store. And there are two reasons for this. The first reason is price competition. On Amazon, your potential customers can easily
compare your prices to your competitor’s prices. If your pricing is not competitive, then they
will buy from your competitors. This means then that if you’re selling an
item that has a lot of sellers, it’s very easy for the price of the item to get driven
really low. That’s why in our free eBook, “How to Make
$10,000 a Month by Dropshipping”, we recommend that when dropshipping on Amazon, that you
find your own products to sell that are in low competition niches. But the thing is when you’re doing Ali Express
drop shipping on Amazon, there are tons of competitors because of the fact that the barrier
to entry is very low. That means that there are lots of other sellers
out there who are driving the prices down making it very difficult to make any profit
at all. Let’s take the Golden Snitch necklace which
is currently selling on World of Harry for $12.99. Yaro is only paying a $1.06 for it so he’s
making a nice $11.93 profit on it before PayPal fees. Now let’s compare that to Amazon. On Amazon, the same necklace currently has
lots of sellers. The biggest seller, Your Warm House, is selling
it for $5.98. And even more backbreaking is that they are
selling it through the Amazon FBA program which means that they are able to offer free
two-day shipping using a Prime account. Let’s say you wanted to dropship the item
and to price match Your Warm House while offering free shipping like they are. As a pro merchant, you’d be paying a $1.40
in fees making a tiny $3.52 in profit. And keep in mind you’d also be having to pay
for the pro merchant account which is $39.99 a month. As you can see, pricing for Ali Express items
on Amazon is cutthroat. The reason why Yaro is able to charge $12.99
for this necklace in his own store is because of the fact that when a potential customer
enters his store, they cannot easily seek his competitor’s pricing. And this is why the prices on Amazon tend
to be a lot lower than retail pricing because when you walk into a retail store, that is
the only price that you see. When you walk into a Dick’s sporting store,
you only see that the cheapest stuff [SP] an armband is selling. It is available for $20 unlike on Amazon where
potential customers could easily see competing stuff for armbands for $5. So that is why it is suitable to dropship
items using Ali Express in your own online store because of the fact that when customers
enter your store, they cannot easily see your competitor’s prices. And the second reason why it is not suitable
to dropship items using Ali Express to Amazon is because of shipping times. There are a lot of sellers out there who are
importing items from Ali Express and then shipping them into the Amazon FBA program. They are making little to no profit and are
doing this to boost their feedback scores. This is evidenced by the Golden Snitch necklace
I discussed earlier. They are paying $4.56 and the fulfillment
fees per order. When you minus the cost of the necklace, which
is a $1.06, they are making just 36 cents in profit. And it probably costs them more than 36 cents
to prep and send the item into the Amazon FBA warehouse anyway. They are basically making no profit per sale,
potentially even making a loss, just so that they can build up their feedback. And there are lots of other sellers out there
offering rock bottom prices while offering local shipping times. Unfortunately, this means that you cannot
compete with them while trying to make a decent profit margin because no one is going to buy
from you. Think about it. Would you buy from a seller who is offering
two-day shipping or would you buy form a seller that’s offering two to four-week shipping? But of course, the reason why Yaro is able
to charge $12.99 plus several weeks in shipping time is because when a customer enters his
store, they cannot easily compare his shipping times to his competitor’s. He sets the expectation. They cannot see that his competitors are offering
free two-day shipping. All they see is his shipping option, and so
that’s why it’s a lot easier to get away with the long shipping times from Chinese suppliers
when you’re selling in your own online store. This is not to say that selling on Amazon
is bad. In fact, it’s amazing. You just need to be using local, USA-based
dropshippers. Amazon is a fantastic place to sell especially
if you don’t have many technical skills, and plus, they’ve already got a huge pool of buyers
already for you. But if you’re willing to put in the time and
effort to create your own online store and promote it, this can be an amazingly profitable
opportunity for you. And ideally, if you’ve got time, the best
thing to do would be to do both. Thanks for watching. If you really like this video, I’d appreciate
it if you gave it a thumbs up. And if you haven’t already, subscribe to Wholesale
Ted. And if you’re interested in getting Ali Partnership
for yourself, the plugin that Yaro uses to make hundreds of dollars a month, then be
sure to click on the link in the video description below. And if you would like to sell on Amazon using
local USA-based dropshippers, then you should be sure to download our free eBook “How to
Make $10,000 a Month by Dropshipping”. You’ll find a link to download this incredible
life changing eBook in the video description below. Man: Hi, there, and thanks for watching this
video created by us here at Wholesale Ted. It is our mission to help everyone start and
grow their own online business. And that is why we’ve created a simple eBook
which shows how anyone…yes, even you, can make $10,000 each and every month with dropshipping
even if you don’t have startup money. And best of all, we’re giving away this eBook
for free. And yes, we really mean it. Absolutely free. So if you’d like to get this potentially life
changing eBook, simply click on the link in this video description and get it now.

100 thoughts on “How to Dropship from Aliexpress with No Start Up Money or Capital

  1. i looked up to start selling on ali express and they said that they only accept sellers from China

  2. Thank Sarah for all the helpful information. I just have 1 more question: When I run my own online store, can I sell products to American or to people in my country? Which one should I aim to?
    Can anyone answer it for me. I'm so appreciated!

  3. Hi, you know what happened with the World of Harry website? still exists? congratulations for your videos and keep going!

  4. Cn you help me.
    My api key of aliexpree is not verify. Website say your api key verify within last five working day but not verify i am waiting for last month.

  5. Bullshit!!!! Lets say Aliexpress 9 $ sel for 18 $ – vat 19/21 % country depending then income tax and other taxes-50 % and other costs, you will make not 9 but less than 3 $ on this item.

  6. How can he offer quick shipping when Aliexpress has 15-30 day shipping, surely buyer won’t want to wait that long?

  7. you said many successful dropshipers make blind shipping to earn huge profit. we can also earn more profit by using the same strategy without including invoices and other purchase proof etc. what will happened when our customer wants to return the product or in case of refund or he want some payment proof with guarantee details etc?

  8. People don't waste your time trying to dropship via AliExpress. Other than shipping times being in some cases 30 days, why would anyone buy from you at a marked up price something that they can purchase on Aliexpress for half the price? People do research you know….and how will you handle returns? Will you ask the customer to return the item to an address in china? That looks very pro! This video and other like it are designed to sell courses which inturn sell Shopify subscriptions etc etc….You'd be better off holding tupperware parties!

  9. wait. if i purchase and ship item to my customer then my customer will know. its from aliexpress not my store name? then why they trust me.??

  10. In order to get people to ultimately trust you and buy your courses even more you will need to dedicate a separate video answering the most important question: What is your motivation selling drop-shipping courses? How is getting a one time fee from a future competitor more profitable than just being a drop-shipper yourself and thus having one competitor less? Doesn’t it bother you that every new drop-shipper you create will potentially be creating even more drop-shippers and what is your long term vision considering this point?

  11. If i dropshiping using ali Express, send to my customer, then my customer will know that it is from ali Express and sell them with very high price… I want to know how you do to avoid this…

  12. if am from Trinidad and Tobago can i build an Ali express drop shipping store? do they accept seller registration from my country?

  13. Hi all, can anyone help me.

    Been looking at some Bape and anti social social club cases on Ali express, normally around £1, they then sell on eBay for around £5-£7. How would you recommend to go about it because it will take 14 days or more to get to them.

  14. I know this is a old video but hoping you can answer. What about delivery time? Isn't that a issue with dropshipping? It says it would take 14-35 days on Aliexpress. Do you cover this in another video?

  15. wouldn't people just go directly to Aliexpress themselves? why would anyone pay double or triple on an online store when they could just go direct to aliexpress??? Can anyone explain how this works…

  16. You'd think that with the amount of makeup she wears for these videos that she'd at least put some chapstick on. I got here by accidentally clicking a youtube ad

  17. Great and informative video! I see lots of comments on how to get traffic to your site?…marketing. GoogleAds, Facebook ads, we've all seen them. You'll be spending a lot of $$ on digital marketing. A catchy URL/domain/store name will help. Setting up your accounts and launching the website is not the difficult part. The marketing will be costly; how do you truly differentiate yourself from the competitors. Selling a unique or trendy item can help you stand out as well; like how about unicorn poop?

  18. Pretty neat. Just a few questions though. I am so new to this. First, what if Ali Express doesn't have what you are offering on your website? Like what if they didn't have the wand? Secondly, when you have it shipped to them, wouldn't it say package came from Ali Express and not your website store name?

  19. It's not that easy! People are paying for convenience. They do not have to wait a month for deliver or deal with US customs. Nothing is nothing that easy!

  20. Hi! I really loved your video and your amazing contents that you have! Can you make a video on how, where, and which websites are useful for dropshipping, other that aliexpress!

    Many Thanks!

  21. You should really remove this law-breaking promoting example even if it's an old video because it most definitely makes you look like an amateur who knows nothing about sales to begin with and it surely will hurt your reputation. Maybe they can get away in China by selling internally these unlicensed products and not incur into legal issue… but anyone selling internationally will become the target of a lawsuit.

    I also noticed the headquarters of this place is in Dubai and maybe that's how they shield themselves since many scammers create shell corps for shady businesses and tax avoidance there (just google it) so they can disappear with the loot at the first sign of trouble only to leave a broke name lending local guy not worth pursuing.

    Again, you may want to re-do this video with a fitting and legit example, but even if you won't I'd remove this one entirely for your own sake… or at the very least edit and re-publish the video with the full disclaimer you have placed at the end and move it at the very beginning of the video.

  22. From California: I am surprised that people make money on their own website.  How do customers not know that Amazon and ebay are cheaper?

  23. How much is the website a month and the upkeep for the site?
    How do you get people to said website? Since your not posting on amazon and eBay…

  24. What about the shipment it takes month to arrived when you bought something from China how to deal with that?

  25. Sarah, as always very very helpful. I had troubles of adding new products to my online shop for very long time. Then I found this WMP eyewear brand and added sunglasses and glasses to my fashion shop. It was really winning strategy for me.

  26. In your video 8:32, you mention that we can purchase the order on customer's behalf from our own affiliate URL. Does this mean that we buy from our own AliExpress account? How does this work?

  27. Hello dear, I like your voice and got a good explanation (scientifically explaining). How do I send to my customers on drops hipping. I really don't get it pls?

  28. I’m sorry if I’m missing something, but is there a way to buy these products in bulk off AliExpress and sent to YOUR address so you can then package the products the way you want and ship it to your customer yourself?

  29. We fall into the same thing again and again, we do not want you to talk about how Ali express and Shopify works, we already know that, explain us where we found a platform to sell that is not Shopify which has no customers and you have a monthly loss, do not talk to us about Amazon and E-bay who do everything possible to suspend your account if you do not have your own physical store and also force you to have a bank account in the United States, what we want to know is where to find a platform in which we can do dropshiping from Ali Express and we do not have to waste time looking for customers. Do not tell us about Shopify, or Amazon, or E-bay is a total waste of time and money.

  30. Order yourself a pre-built dropshipping store today! Use promo code "Youtube" for 20% off Wealthyecommerce.com

  31. Hi Sarah! How about selling a product that other people sell on Amazon already? Why would customers choose my aliexpress product that arrives in 3 weeks instead of the same product from amazon that arrives in 3 days?
    Please help me!
    I am waiting for your answer. Thank you!

  32. My question is how would a person not know Ali Express but would my drop shipping website? While I understand that I would have to market my product on the net but Ali Express does not need to!

  33. You typically give the dropshipper your logo artwork and they create (for a small fee) the shipping label and or packing slip with your logo on it so that the customer will see the product shipping from your store and not China. I didn't hear Sarah speak to this unless I missed it?

  34. Good commentary, great tips! One thing I'd like to note is most people, even though they came here for advice, simply do not watch the entire video. Therefore, illegally advertised, licensed products such as Harry Potter, although you addressed it toward the middle of the video, should be addressed @ the beginning, mainly for that reason . It's astonishing just how many existing and startup business owners are virtually unaware of this issue, so that was an EXCELLENT POINT!!! Again, good advice, new subbie✌

  35. Sarah, im confused as to what will be on the customers receipt once they receive their item, i mean if they pay me $20 for an item i payed $10 for and its shipped to them directly, wouldn't they receive a receipt for the $10 i payed for the item?

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